Investments!
- Thread starter Lugnut
- Start date
itsbob
I bowl overhand
But you aren't looking at it being a matter of 1.5 or 2k.. you are talking about (hopefully) The difference between say 600K in a Roth.. or upwards of 1.5 million in a conventional.. While you may be withdrawing $2300 a month from the conventional to be equal to the $2000 from a Roth, you;ll still be earning interest on the 1.5 million oppsed to the 600k.. In other words you could be withdrawing 2 - 4 k a month and NEVER touch the principle.. and you'd would NEVER run out of money, no matter how long you live..JEB said:
Assuming taxes are an easy to figure 25%. So $600k in a roth would be @ $800k in a conventional, not 1.5 mill. Though I agree with your withdrawal ratio.
OK, any intrest earned while in the roth is tax free. So a 5% rate of return would be like a 6.25% return otherwise.
I guess we each need to do our own caculations as to which is better.
What I do is put my high dividend stocks in the roth, and my more speculitive (rising share price) stocks elsewhere.
And roths have a yearly contribution limit, so it will never be my total retirement.
By the way is there a spell checker that I'm missing?
OK, any intrest earned while in the roth is tax free. So a 5% rate of return would be like a 6.25% return otherwise.
I guess we each need to do our own caculations as to which is better.
What I do is put my high dividend stocks in the roth, and my more speculitive (rising share price) stocks elsewhere.
And roths have a yearly contribution limit, so it will never be my total retirement.
By the way is there a spell checker that I'm missing?
itsbob
I bowl overhand
You're close. but if you figure $700 invested today, compared to $1000 invested today (28% - 30% tax bracket) figure 12% interest earned over a 30 year period how much would the $700 (Roth) and $1000(conventional) be worth??JEB said:
At 12% would mean your money doubles every 6 years.. so it doubles 5 times.. The $600 is now worth $19,200, the $1000 invested equals $32,000. ALMOST double.. If we take the numbers further, lets say we started when we were 21 and wanted to retire at 65, your money would double two more times.. 76.8k for the $600, and 128k for the $1000.. That's where the difference comes in.
I assume the 600 is a typo. You started out with 700. ;-) My number was 800, which is closer to my tax bracket.
The 700 will grow to 22,400, which is all tax-free. The 1k will grow to 32k, which after taxes(30%) will give about the same. Yes a lesser rate will return more.
I guess the real question is: What will be your future tax rate, based not just on your income, but also on any changes the IRS makes?
The 700 will grow to 22,400, which is all tax-free. The 1k will grow to 32k, which after taxes(30%) will give about the same. Yes a lesser rate will return more.
I guess the real question is: What will be your future tax rate, based not just on your income, but also on any changes the IRS makes?
Lugnut
I'm Rick James #####!
JEB said:
In the past I looked at a lot of different funds but I've ended up settling on the Vanguard S&P index. I've only recently started switching from mutual funds to stocks. I'm still learning but after doing a lot of reading I recently added AHL, ANW, and PDLI. I know Ford is in pretty bad shape but I'm taking a longer view and when they dropped to $7 I couldn't help myself, I bought a chunk to sit on.
Bavarian
New Member
Right now, income taxes are low. When and if the Bush tax cuts expire, the tax rate will go up, If Shillery or any of the other Democracts win the White House next year, they plan on huge increases in income taxes to pay for their Socalistic ideas.Pete said:
Bottom line, taxes may very well be higher when you start withdrawing from your IRA.
The number I have always heard is 4%/annum as the starting withdrawal amount from all you investments and savings on retirement. Increasing based on inflation. That will ensure you won't outlive your money and will have some left to give to charity and relatives.
Depending on your age, you need to be aggressive with your investments, a plain savings account will not do. Get ready to do some bottom fishing once the market correction stabilizes.
Do you use a full service broker or discount broker? I have both. The full service for more stable investments and the discount broker for taking a shot at some chanceier stocks. Cheaper to get in and out.
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C
czygvtwkr
Guest
Max out your 401k and then put 4k a year in a Roth. The Roth is good if you plan on taking out a large chunk all at once like 200k for a motor home.
Lugnut
I'm Rick James #####!
JEB said:
Yeah it would. Got any inside tips?
That kind of investing gives me the heebie jeebies.
I'm more of a "value" investor than a growth investor.You mentioned Underarmour before. I haven't done any research on them but there main product line is now being copied by several other mfr's which leads me to guess they're going to lose marketshare over time.
Do you like the company? If so, what about it do you like?
itsbob
I bowl overhand
OK I screwed up witht he 600 and 700.. so lets look at 700 a month and 1000 a month for the next 30 years at 10% or 12%
at 10% the 700 will = 1.6Million the 1000 = 2.2Million.. at 12% the 700 = 2.4 million, the 1000 is 3.5 million.. now IF you took it all out at one time it would be equal, but if you are only taking out your monthly pay, the 3.5 million will never be touched, you'll make more in interest a month than you'll be taking out. 2.4 million would be about the same, but you have one MILLION less dollars..
at 10% the 700 will = 1.6Million the 1000 = 2.2Million.. at 12% the 700 = 2.4 million, the 1000 is 3.5 million.. now IF you took it all out at one time it would be equal, but if you are only taking out your monthly pay, the 3.5 million will never be touched, you'll make more in interest a month than you'll be taking out. 2.4 million would be about the same, but you have one MILLION less dollars..
Aren't you supposed to be on vacation Mister?!
Sorry I didn't know it was 'a month'itsbob said:
I admit you tend to loose me with the caculations (just a dumb carpenter)
but I see no mention on the effect of taxes on the withdrawals? But I suspect you are right.
Lug--Haven't looked into UnderArmour except to know its a local company and doing well.
willie
Well-Known Member
If you are up 11-13% for the last month (not YTD), don't screw up a good thing by asking others what to do.Lugnut said:Just checked my portfolio and my two largest positions are up 11% and 13% for the past MONTH!
I'm still learning about investing and am on the conservative side so seeing a one month gain like this was unexpected.
What kind of investment strategies do you all have?
Lugnut
I'm Rick James #####!
I'm stumped. My top pick (ANW) is now up 77% from when I bought just over 2 months ago. Hey fantastic, I've made an assload of money, but I would really like to know **WHY** so I can duplicate the effort!
The fundamentals have not changed over the preceding two months. The only thing I can attribute the sudden rise to is a an article written last month. One article caused this kind of jump?!
Can some of you more savvy guys look at ANW and see if you can find anything that would explain the sudden pop?
The fundamentals have not changed over the preceding two months. The only thing I can attribute the sudden rise to is a an article written last month. One article caused this kind of jump?!
Can some of you more savvy guys look at ANW and see if you can find anything that would explain the sudden pop?
Chain729
CageKicker Extraordinaire
You got lucky. It's new, it got investor attention, and so it took off. I can't find much info on the company. I did find that sharebuilder only tracks it back about a year and yahoo says that the company was founded in 2005.
I haven't looked into it much, but at a quick glance, a 43.xx:1 P/E ratio scares the crap out of me. Most established companies, at least in the sectors that interest me, are between 10:1 and 20:1
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